Google Faces Judge's Ruling, But Relief May Be In Sight
Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) shares have been under pressure since the second-quarter earnings with investors focusing on Judge Amit Mehta's impending decision on remedies for Google's search monopoly, according to JPMorgan.
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The Alphabet Analyst: Analyst Doug Anmuth reiterated an Overweight rating and price target of $232.
The Alphabet Thesis: While the financial implications of the remedy are "difficult to predict," it will provide greater clarity, Anmuth said in the note.
While investors widely expect a negative outcome, the remedy could be "less punitive than expected," he added.
The outcome could be a prohibition of exclusionary practices and preloading of Google Search, the analyst stated.
"Regardless of the remedy, Google will immediately appeal the Judge's initial August 2024 monopoly ruling, and perhaps the remedy itself," he wrote.
Those possibilities outweigh the near-term risks, "which we believe could be a 5-10% headwind to GAAP EPS," Anmuth further stated.
Price Action: Shares of Alphabet had declined by 0.71% to $192.71 at the time of publication on Monday.
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Posted-In: Doug Anmuth JPMorganAnalyst Color Legal Tech
